What changed in this filing

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Item 1. Business

2024-06-27 compared with 2023-06-26 · 61 added, 67 removed, 262 unchanged (33% of the section changed)

50 unchanged sentences

consisting of various mineral, royalty and overriding royalty interests.

Energy Corporation, purchase price of $1,591,000 consisting primarily of working interests

in approximately 634 wells located in 12 states.

interests, purchase price $304,000 covering 37 producing wells in the Cotton Valley formation

in Limestone County, Texas and the Lower Cotton Valley formation in Jackson Parish, Louisiana.

This acreage contains 13 permitted or drilling wells and approximately 100 potential undrilled

interests, purchase price $500,000 covering 4 producing gas units in Freestone County, Texas containing 33 producing wells and 17 potential

undeveloped locations in the Cotton Valley formation.

interests, purchase price $550,000 covering 75 producing wells, 9 permitted and/or drilling

wells, and 83 potential undeveloped locations in the Cotton Valley formation of Freestone

and Limestone Counties, Texas.

2007 Non-operated

Energy Corporation, purchase price of $1,591,000 consisting primarily of working interests in approximately 634 wells located in

interests, purchase price $304,000 covering 37 producing wells in the Cotton Valley formation in Limestone County, Texas and the

Lower Cotton Valley formation in Jackson Parish, Louisiana.

This acreage also contains additional potential undrilled locations.

interests, purchase price $500,000 covering 4 producing gas units in Freestone County, Texas containing 33 producing wells and additional

potential undeveloped locations in the Cotton Valley formation.

interests, purchase price $550,000 covering 75 producing wells and additional potential undeveloped locations

in the Cotton Valley formation of Freestone and Limestone Counties, Texas.

working interests, purchase price $425,000 covering 2 properties in Lea County, New Mexico.

(mineral) acreage, purchase price $1,850,000 covering 122 mineral acres in the Newark East (Barnett Shale) Field of Tarrant County, Texas

amounting to approximately 21.45% royalty interest.

(mineral) acreage, purchase price $429,000 covering 522 mineral acres in the Newark East

(Barnett Shale) Field of Tarrant County, Texas containing 6 producing natural gas wells,

5 proven undeveloped well locations, and 6 potential drill sites on this acreage.

2009, purchased additional interests, $49,000.

2010 Southwest

Texas Disposal Corporation, purchase price $478,000 consisting of royalty interests in over

300 wells located in 60 counties and parishes of 6 states.

(mineral) acreage, purchase price $1,850,000 covering 122 mineral acres in the Newark East (Barnett Shale) Field of Tarrant County,

Texas amounting to approximately 21.45% royalty interest.

(mineral) acreage, purchase price $429,000 covering 522 mineral acres in the Newark East (Barnett Shale) Field of Tarrant County,

Texas containing 6 producing natural gas wells and additional potential undeveloped well locations.

In March 2009, purchased additional interests, $49,000.

Texas Disposal Corporation, purchase price $478,000 consisting of royalty interests in over 300 wells located in 60 counties and

parishes of 6 states.

royalty interests, purchase price $1,650,000 covering 5,120 gross acres over 8 sections in the Haynesville trend area of DeSoto Parish,

Louisiana containing 6 horizontal producing wells, 2 wells drilling wells, and 57 additional potential drill sites.

Louisiana containing 6 horizontal producing wells and additional potential undeveloped drill sites.

The Company paid

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Non-operating

working interests, purchase price $670,000 covering 160 gross acres in the Fuhrman-Mascho

Field of Andrews County, Texas containing 5 producing wells in the Grayburg and San Andres

formations and additional 11 potential drill sites.

In March 2012, purchased additional working

interests, $275,000.

Oil and Gas, LLC, purchase price of $1,150,000 consisting of working interests in approximately

280 wells located in 16 counties of 3 states.

interests, purchase price $200,000 covering 43 wells in 12 counties of 8 states, primarily

working interests, purchase price $670,000 covering 160 gross acres in the Fuhrman-Mascho Field of Andrews County, Texas containing

5 producing wells in the Grayburg and San Andres formations and additional potential drill sites.

In March 2012, purchased additional

working interests, $275,000.

Oil and Gas, LLC, purchase price of $1,150,000 consisting of working interests in approximately 280 wells located in 16 counties

interests, purchase price $200,000 covering 43 wells in 12 counties of 8 states, primarily in Texas.

interests, purchase price $580,000 covering 580 wells in 87 counties of 8 states.

Approximately 90% of the net revenue from these royalties

is produced by 157 wells located in the Barnett Shale of the Fort Worth Basin of Texas.

Also included are interests in 423 wells in 8

Approximately 90% of the net revenue from these

royalties is produced by 157 wells located in the Barnett Shale of the Fort Worth Basin of Texas.

and mineral interests, purchase price $1,000,000 covering approximately 1,800 wells in 27 counties of Texas.

Of these oil and gas reserves,

approximately 80% is natural gas and 20% oil.

Of these oil and gas

reserves, approximately 60% is natural gas and 40% oil.

working interests, purchase price $840,000 in 70 Natural gas producing wells located in 5 counties of Oklahoma.

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Eddy County, New Mexico;

and, Nolan and Smith

Counties, Texas.

interest investment, $300,000 for a less than 1% investment commitment in a limited liability

company, capitalized at approximately $50 million to purchase royalty interests consisting

of minerals located in the Marcellus and Utica areas of Ohio.

This LLC has returned $226,725 and 76% of the total investment since inception in fiscal 2020.

2022-2023 Overriding

royalty interests, purchase price of $567,000 covering 53 producing wells and several additional

potential locations for development in Atascosa and Karnes Counties, Texas.

interests, purchase price of $939,000 covering 22 producing wells and several additional potential locations for development in the Eagleford

area of Dimmit County, Texas.

and, Nolan and

Smith Counties, Texas.

interest investment, $300,000 for a less than 1% investment commitment in a limited liability company, capitalized at approximately

$50 million to purchase royalty interests consisting of minerals located in the Marcellus and Utica areas of Ohio.

This LLC has returned

$276,098 and 92% of the total investment since inception in fiscal 2020.

royalty interests, purchase price of $567,000 covering 53 producing wells and several additional potential locations for development

in Atascosa and Karnes Counties, Texas.

interests, purchase price of $939,000 covering 22 producing wells and several additional potential locations for development in the

Eagleford area of Dimmit County, Texas.

interest investment, $2,000,000 for an approximate 2% investment commitment in a limited liability company, capitalized at approximately

$100 million to purchase royalty interests consisting of minerals located in the Marcellus and Utica areas of Ohio.

As of the date of

this report, $400,000 of the commitment has been expended.

Royalty interests, purchase price of $117,200 covering 28 producing wells in 6 counties in the Haynesville trend

area of Louisiana and 5 counties in Texas.

As of the date

of this report, $1,000,000 of the commitment has been expended.

interests, purchase price of $117,200 covering 28 producing wells in 6 counties in the Haynesville trend area of Louisiana and 5

counties in Texas.

interests, purchase price of $455,000 covering 8 producing wells and additional potential locations for development in Reeves County,

interests, purchase price of $367,500 covering 84 producing wells and additional potential locations for development in 6 counties

interest, purchase price of $575,600 covering 9 producing wells with additional potential locations for development and 4 producing

wellbores in Weld County, Colorado.

interests, purchase price of $390,300 covering 255 producing wells in the Haynesville trend area of Caddo Parish, Louisiana.

Environment and Outlook

outbreak of the novel coronavirus (“COVID-19”) resulted in a severe worldwide economic downturn, significantly disrupting

the demand for oil throughout the world, and created significant volatility, uncertainty and turmoil in the oil and gas industry.

decrease in demand for oil, combined with excess supply of oil and related products, resulted in oil prices declining significantly in

late February 2020.

Since mid-2020, oil prices have improved, with demand steadily increasing despite the uncertainties surrounding the

COVID-19 variants, which have continued to inhibit a full global demand recovery.

In addition, worldwide oil inventories, from a historical

perspective, remain low and concerns exist with the ability of Organization of Petroleum Exporting Countries (“OPEC”) and

other oil producing nations to meet forecasted future oil demand growth in 2023 and 2024, with many OPEC countries not able to produce

at their OPEC agreed upon quota levels due to their limited capital investments, and increases in cost over the last few years directed towards developing incremental

oil supplies.

commodity price environment was challenging in fiscal 2024.

The war in Ukraine and the Israel-Hamas war, rising interest rates, global

supply chain disruptions, concerns about a potential economic downturn or recession and measures to combat persistent inflation and instability

in the financial sector have contributed to recent economic and pricing volatility and may continue to impact pricing throughout fiscal

In light of these challenges facing our industry and in response to the continued challenging environment, our primary business

strategies for fiscal 2025 will continue to include:

(1) optimizing cash flows through operating efficiencies and cost reductions, (2)

divesting of non-core assets, and (3) working to balance capital spending with cash flows to minimize borrowings and maintain ample liquidity.

Part II, Item 7.

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and Gas Operations

of March 31, 2023, oil constituted approximately 70% of our oil and gas revenues and approximately 47% of our total proved reserves volumes

of March 31, 2024, oil constituted approximately 83% of our oil and natural gas sales and approximately 51% of our total proved reserves

volumes for fiscal 2024.

Revenues from oil and gas royalty interests accounted for approximately 28% of our total operating revenues

for fiscal 2024.

Revenues from oil and gas royalty interests accounted for approximately 28% of our oil and gas revenues for fiscal 2023.

are two primary areas in which the Company is focused, 1) the Delaware Basin located in the Western portion of the Permian Basin including

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The Permian Basin is known to have a number of zones of oil and natural gas bearing rock throughout.

Delaware Basin properties, encompassing 30,007 gross acres, 195 net acres, 610 gross producing wells and 4 net wells account for approximately

Delaware Basin properties, encompassing 39,112 gross acres, 213 net acres, 742 gross producing wells or 4 net wells account for approximately

70% of our discounted future net cash flows from proved reserves as of March 31, 2024.

For fiscal 2024, these properties accounted for

62% of our net revenues.

62% of our gross revenues.

Of these discounted future net cash flows from proved reserves, approximately 29% are attributable to proven

undeveloped reserves which would be developed through new drilling.

Midland Basin properties, encompassing 97,584 gross acres, 256 net acres, 1,016 gross producing wells and 2 net wells account for approximately

Midland Basin properties, encompassing 115,030 gross acres, 249 net acres, 1,731 gross producing wells or 5 net wells account for approximately

13% of our discounted future net cash flows from proved reserves as of March 31, 2024.

For fiscal 2024, these properties accounted for

14% of our net revenues.

23% of our gross revenues.

Of these discounted future net cash flows from proved reserves, approximately 5% are attributable to proven

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and overall economic conditions.

made sales that amounted to 10% or more of oil and gas revenues as follows for the years ended March 31:

made sales that amounted to 10% or more of operating revenues as follows for the years ended March 31:

Historically,

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business